Secondary markets allow investors to trade securities that have already been issued, such as stocks and bonds. There are two levels of capital markets where investors participate: primary markets where new securities are issued, and secondary markets where existing securities trade. Secondary markets include stock exchanges like BSE, NSE, and OTC markets. They provide liquidity to investors and facilitate price discovery for securities. Government securities and corporate securities such as shares and debentures are traded in secondary markets.
4. There are aaccttuuaallllyy ttwwoo lleevveellss ooff
tthhee ccaappiittaall mmaarrkkeettss iinn wwhhiicchh
iinnvveessttoorrss ppaarrttiicciippaattee::
Primary Markets
Secondary Markets
5. SSEECCOONNDDAARRYY
MMAARRKKEETT
Secondary market means market for
purchase and sale of second hand
securities.
Securities once sold can be resold to
others through stock brokers.
Also called After Market.
6. It is a organized market where
securities issued by- Companies,
Government, Semi Government
Institutions and Public bodies are
traded.
These securities are traded in
the stock exchange where they
are listed.
15. FFUUNNCCTTIIOONN OOFF SSEECCOONNDDAARRYY
MMAARRKKEETT
Capital Formation:
By mobilizing the savings of the
public to productive purposes,
facilities in capital formation
and there by economic growth.
16. Security Price Formation:
By quoting the share price in
the secondary market the
real worth of a security can
be know to the investors.
17. Liquidity to Investment:-
Secondary market provides ready
and continuous market for listed
securities, hence investors can
enjoy liquidity to the investors.
18. Securities ttrraaddeedd iinn
tthhee SSeeccoonnddaarryy MMaarrkkeett
Government Securities:-
Includes securities of Central
Government, State
Government, State Corporation
and Semi Government
Authority like Port trust,
Municipal corporation etc.
19. Corporate Securities:-
Corporate or Industrial
Securities includes equity
shares, preference share and
debentures of different types.